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1 2 3 4 5 6 COMP Todd M. Touton, #1744 [email protected] Robert Hernquist, #10616 [email protected] LIONEL SAWYER & COLLINS 1700 Bank of America Plaza 300 South Fourth Street Las Vegas, Nevada 89101 (702) 383-8855 (Telephone) (702) 383-8845 (Fax) Electronically Filed 08/04/2011 02:25:08 PM CLERK OF THE COURT 7 Attorneys for VlON OPERATIONS LLC and STRATEGIC FUNDING SOURCE, INC. 8 9 DISTRlCT COURT 10 CLARK COUNTY, NEVADA 11 VlON OPERATIONS LLC, a Nevada limited Case No. A- 11- 646131- C liability company; and STRATEGIC Department ______ _ 12 FUNDING SOURCE, INC., a New York 13 14 15 16 J,,7 18 19 20 21 22 23 24 25 26 27 28 LIONEL SAWYER &COl1.INS AlTORNE.'{S AT LAW 1700 BANK Of AMERICA P 300 SOUTH FOURTH ST. lAS VEGAs, NEVADA B91D1 .. 8M6 corporation, COMPLAINT Plaintiffs, v. JAY L. BLOOM, an individual; CAROLYN S. FARKAS, an individual; EAGLE GROUP HOLDINGS, LLC, a Nevada limited liability company; EAGLE GROUP MARKETING, LLC; a Nevada limited liability company; A.D.D. PRODUCTIONS, LLC; aNevada limited liability company; ORDER 66 ENTERTAINMENT, LLC., a Nevada limited liability company; DOES I through X; and ROE CORPORATIONS I through X Defend t (Arbitration Exemption Claimed: Amount in Controversy Exceeds $50,000 and Action Seeking Declaratory Relie!) Vion Operations LLC ("Vion") and Strategic Funding Source, Inc. ("Strategic Funding") allege as follows: 1. Vion is a Delaware limited liability company authorized to do business in Clark County, Nevada and is a purchaser from Murder Inc., LLC ("Murder Inc.") under the agreements as hereinafter described. Murder Inc. operates the Las Vegas Mob Experience Exhibit at the Tropicana Hotel and Casino and has not been made a party to this lawsuit.

Transcript of ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant...

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COMP Todd M. Touton, #1744 [email protected] Robert Hernquist, #10616 [email protected] LIONEL SAWYER & COLLINS 1700 Bank of America Plaza 300 South Fourth Street Las Vegas, Nevada 89101 (702) 383-8855 (Telephone) (702) 383-8845 (Fax)

Electronically Filed 08/04/2011 02:25:08 PM

~j..~.y-CLERK OF THE COURT

7 Attorneys for VlON OPERATIONS LLC and STRATEGIC FUNDING SOURCE, INC.

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9 DISTRlCT COURT

10 CLARK COUNTY, NEVADA

11 VlON OPERATIONS LLC, a Nevada limited Case No. A- 11- 646131- C liability company; and STRATEGIC Department ______ _

12 FUNDING SOURCE, INC., a New York

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28 LIONEL SAWYER

&COl1.INS AlTORNE.'{S AT LAW

1700 BANK Of AMERICA P 300 SOUTH FOURTH ST.

lAS VEGAs, NEVADA B91D1 (702)~3 .. 8M6

corporation, COMPLAINT

Plaintiffs,

v.

JAY L. BLOOM, an individual; CAROLYN S. FARKAS, an individual; EAGLE GROUP HOLDINGS, LLC, a Nevada limited liability company; EAGLE GROUP MARKETING, LLC; a Nevada limited liability company; A.D.D. PRODUCTIONS, LLC; aNevada limited liability company; ORDER 66 ENTERTAINMENT, LLC., a Nevada limited liability company; DOES I through X; and ROE CORPORATIONS I through X

Defend t

(Arbitration Exemption Claimed: Amount in Controversy Exceeds $50,000 and Action Seeking Declaratory Relie!)

Vion Operations LLC ("Vion") and Strategic Funding Source, Inc. ("Strategic Funding")

allege as follows:

1. Vion is a Delaware limited liability company authorized to do business in Clark

County, Nevada and is a purchaser from Murder Inc., LLC ("Murder Inc.") under the agreements

as hereinafter described. Murder Inc. operates the Las Vegas Mob Experience Exhibit at the

Tropicana Hotel and Casino and has not been made a party to this lawsuit.

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2. Strategic Fuuding is a New York corporation and was a co-purchaser with Vion

under the agreements with Murder Inc. as hereinafter described.

3. Jay L. Bloom ("Bloom") is a resident of Clark County, Nevada

4. Carolyn S. Farkas ("Farkas") is believed to be a resident of Clark County, Nevada

and both is and was at all relevant tbnes the spouse of Bloom.

5. Eagle Group Holdings, LLC ("Eagle") is a Nevada limited liability company.

8 Eagle was 100% owner of Murder Inc. but Eagle gave Bloom all management authority for

9 Murder, Inc .. Bloom is Eagle's managing member, but Eagle is an alter ego of Bloom.

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6. EagJe Group Marketing, LLC ("Eagle Marketing") is a Nevada limited liability

company. Eagle is one of Eagle Marketing's managing members, but Eagle Marketing is an alter

ego of Bloom.

7. A.DD Productions LLC ("A.D.D. ") is a Nevada limited liability company. Eagle

15 is A.DD.'s managing member, but A.D.D. is an alter ego of Bloom.

16 8. Order 66 Entertainment, LLC ("Order 66") is a Nevada limited liability company.

17 Eagle is Order' 66's managing member, but Order 66 is an alter ego of Bloom.

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28 lIONt!LSAWYER

aCOLUNS ATTORN~S AT LAW

nIX! eANK OF AMERICA PLAZA :.l1Kl $OUTl-l FOURTH ST.

LA5V~A$, NEVADA 89t01 {702jaB3-8~

9. The true names and capacities, whether individual, corporate, associate or

otherwise, of defendants Does I through X and Roe Corporations I through X are unknown to

plaintiff at the present time and plaintiff therefore sues said defendants by such fictitious names.

Plaintiff is informed and believes and thereupon alleges that each of the defendants designated as

Does I through X and Roe Corporations I through X are responsible in some manner for the

events and happenings referred to here. Once discovery has disclosed such entities, plaintiff will

ask leave of this Court to amend its Complaint to insert the true names and capacities of said

defendants and to join such defendants in this action.

10. The events described herein occurred in Clark County, Nevada.

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LIONEl..'SA~ &COUINS

ATTORNEYS AT LAW 1100 BANK Of AMERICA P

300 SOUTH fO\.lRTH Sf. LASVEGNJ,

NEVAOoI. 891 01 (102) S83-a883

11. On February 25, 2011, Murder Inc. through its sole-authorized representative,

Bloom, entered into a Purchase and Sale of Future Receipts Agreement with Vion and Strategic

in the form of Exhibit 1. Separately, on the same day, defendant Bloom and Louis Ventre

("Ventre") executed the Merchant Security Agreement and Guaranty on behalf of Murder Inc.

and in their individual capacities. The Merchant Security Agreement and Guaranty is attached as

Exhibit 2. The Purchase and Sale of Future Receipts Agreement and the Merchant Security

Agreement and Guaranty are collectively referred to herein as the "Agreements". Bloom and

Ventre personally guaranteed performance of all of Murder Inc.'s obligations under the

Agreements.

12. On March 14, 2011, Murder Inc., through Bloom acting as owner and Louis

Ventre, President, entered into a second Purchase and Sale of Future Receivables Agreement

with Strategic in the form of Exhibit 3 attached. Separately, on the same day, defendant Bloom

and Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic

FWlding Source, Inc. in the form of Exhibit 4 attached. Bloom and Ventre personally guaranteed

performance of all of Murder Inc.'s obligations under the Agreements.

B. Pursuant to the Agreements, Vion and Strategic purchased certain credit card

receipts and non-credit card receipts from Murder Inc. totaling $4,092,171.40 which receipts

were protected by security interests confirmed through financing statements med with the

Nevada Secretary of State (the "Financing Statements"). The receipts include credit card

payments received when admission is purchased to the Mob Experience attraction at the

Tropicana Hotel & Casino. Vion's and Strategic's security interest includes all personal property

of Murder Inc. The Merchant Security Agreement and Guaranty with Bloom and Murder Inc.

set forth terms prohibiting Murder Inc. as the Merchant or Bloom as a guarantor from creating or

permitting to exist directly or indirectly any other encwnbrance with respect to Vian's and

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&COWNS ATTORNEYSATLAW

1700 BANK OF .wERICA P aoo SOUll-l FOURTH ST,

lAS-VEGAS, NCVAOA89101 {7Il213&3-$IlU

Strategic's collateral, including subsequent liens. True and correct copies of the Financing

Statements are attached as Exhibits 5 and 6. The Financing Statements warn that jimior

encumbrances of Vion's and Strategic's claim collateral would constitute material default under

the terms of the Merchant Security Agreement and Guaranty.

14. Bloom, on behalf of Murder Inc., as its agent, induced Vion and Strategic to

purchase future accounts of MurderInc. and in so doing assured Vion and Strategic that he had

not already through his conduct and would not thereafter destroy the company's ability to

continue in business by looting it of all or substantially all capital needed for operations.

15. Bloom's fraud included the following:

(a) Murder Inc.'s financial statements were provided by Bloom to qualify for

the transaction with Vion and Strategic. The financial statements submitted were

materially false in several respects. Bloom gave false information in the financing

statements regarding:

(i) payables;

(ii) visitor volumes; and

(iii) company liabilities.

(b) Bloom made no mention of past due contractor and trade payables in the

financing statements.

(c) Bloom submitted updated financials on or about July 8, 2011, which

revealed nothing of the true financial condition of Murder Inc., did not reveal he was

looting the company and were provided to conceal his ongoing fraud.

(d) Bloom's attendance forecast for the attraction was based on patently

unrealistic and unreasonable assumptions designed to fraudulently induce Vion and

Strategic to finance Murder Inc.. He projected 4, II 0 people per day, starting in the first

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&COWNS ATTORNEYS AT LAW

11(1) BANK OF AMERICA PLAZA 3-00 SOUTH FOURTH ST,

LABVEGAB, NEVAM89101 (702) 283·81108

month. He knew the design of the exhibit would make it impossible to put that many

people through the exhibit in a single day.

(e) Bloom showed the ticket price at $29.95. When the exhibit opened, the

ticket price was $39.95.

(f) The Murder Inc. debt Bloom disclosed was approximately $8,000,000

with a total income assignment to other parties of 25.05%. The actual debt for Murder

Inc. at the time was $15,439,548.58 with a note face value (i.e. total payback amount) of

$16,050,380.22. The income assignments to third parties associated with this level of

indebtedness was 46.299%, resulting in materially less cash being available to operate the

company than represented.

(g) Bloom represented to Vion and Strategic that Murder inc. would owe its

general contractor MJ Dean Construction indebtedness of $250,000 per month for the

period from March-October 2011 for a total of $2,000,000 due to complete construction.

Bloom made none of those payments, but the amount of construction indebtoess is now

believed to be in excess of $4,600,000.

(h) Bloom represented that total payroll for Murder Inc. would be $25,980.00

per month. The payroll is believed to be $73,268.00 every two weeks or $146,536.00 per

month.

(i) Bloom never disclosed that he has not paid payroll taxes of Murder, Inc.

16. Section 2.19 of the Merchant Cash Advance Agreement Terms and Conditions

requires that all information provided by Murder Inc. and each guarantor to Vion and Strategic

be true, accurate and complete in all respects. Much of the information Bloom provided to Vion

and Strategic was untrue, inaccurate and incomplete in violation of Section 2.19 of the Merchant

Cash Advance Agreement.

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17. Bloom knew the fInancial statements, projected expenses and other projections

and related assumptions he gave Vion and Strategic were fIction and he presented 'them

specifically to induce Vion and Strategic to fund the Agreements. The Agreements were funded

in the amount of $3,147,824.10. All of the funds from Vion and Strategic were procured for

Murder Inc. by Bloom's fraud.

18. Bloom promised pursuant to the Merchant Security Agreement and Guaranty not

to create, incur, assume or permit to exist, directly or indirectly, any lien or other encumbrance

on or with respect to any of Vion's or Strategic'S collateral. On March 21, 2011, Bloom

willfully breached the Agreements by pledging the same personal property collateral, including

deposit accounts and other intangibles to another creditor pursuant to the financing statement

attached as Exhibit 7.

19. This breach was part of a pattern of fraud. Bloom used certain alter egos before

15 and after the execution of the Agreements to advance his fraudulent scheme.

16 20. Bloom's diversions of funds from Murder Inc. in 2010 consisted of at least the

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28 LJONELSAWYER

& COlLINS ATIORNEYS AT LAW

17Uij BAM( Of AMERICA P ~ SOUTH FOURTH ST.

LAs VEGAS, NeVADA 89101 o~~.aa8a

21.

(a)

(b)

A.D.D. Productions LLC

Eagle Group Holdings LLC

$ 39,000.00

$1,245,250.00

Bloom's diversions of funds from Murder Inc. from January 1,2011, through June

30,2011, consisted of at least the following:

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A.D.D. Productions LLC

Eagle Group Marketing LLC

Order 66 Entertainment LLC

Eagle Group Holdings LLC

$ 50,700.00

$ 124,041.00

$ 31,400.00

$ 590,193.92

Bloom diverted funds directly from Murder Inc. and from Eagle for payment of

personal expenses, including such items as car payments, credit card bills, housing expenses

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1 (cable TV, utilities, pool cleaning, maid service), groceries and the like using categories in his

2 own records such as "cash for Jay" and "to be accounted for later." Bloom used an on-line

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account transfer from Murder Inc.'s operating account 10 his personal account and frequently

used ATM withdrawals in the tens of thousands of dollars to accomplish these personal

diversions. In addition to other indirect payments for the benefit of Bloom, Bloom diverted over

$455,000 from April 3, 2009, to June 7, 2011, directly to himself from Murder Inc.

23. Bloom diverted funds from Eagle and other alter egos for payment of personal

9 expenses. Bloom diverted over $203,500 from 2010 throngh June 2011.

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I!.COlUNS ATTORNEYS AT LAW

1700 BANK OF MlIOHICA P 500 SOVTH FOURTH sT.

lAS VEGAS, NEVAOII69101 (10l) 363-81188

24. By diverting flUlds to his alter egos, Bloom deliberately and purposely rendered

Murder Inc. insolvent and unable to meet its obligations as they became due without additional

financing. Murder Inc. cannot operate and it carmot pay its existing debts without additional

financing.

25. The entities to which Bloom authorized wrongful transfers of money are each

owned and controlled by Bloom or Farkas, his wife. They are all alter egos for Bloom governed

by Bloom, with a unity of interest inseparable from Bloom. Adherence to the limited liability

company fiction for Eagle, A.D.D., Eagle Marketing and Order 66 would sanction a fraud and

promote injustice.

26. Bloom's diversion of funds actively looted the working capital of Murder Inc. As

a consequence he was forced to relinquish 95% of his ownership interest 10 GC Global Capital

Group (one of Murder Inc.'s creditors) in July 2011.

27. Bloom's fraud and further breach of the Agreements includes the following:

(a) Bloom has reduced and impaired the value of Vion's and Strategic's

security interest under the Merchant Security Agreement and GlJaranty in further violation

of Section 3.1 of the said agreement. All of the breaches were deliberately and purposely

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110 COlliNS ATTORNEYS AT LAW

1700 BANK OF AMERICA P 3OOSOlITH FOURTHs!.

LMlVEGAS, Ne.,,~a9101

(702J lB3-lIS88

done by Bloom to advancc the purpose of fraud and fraudulent concealment and through his

fraud to wrongfully induce Vion and Strategic to make available the financing transaction in

question.

(b) Bloom did not correct or amend the financial statements as required by

Section 2.1 of the Merchant Cash Advance Agreement as he looted Murder Inc., but

deliberately mislead Vion and strategic with supplemented financial submissions.

(c) By willfully looting the company before and after the execution of the

Merchant Cash Advance Agreement, Bloom violated, and concealed his violation of, the

Agreements.

(d) Bloom diverted substantially all of the operating capital necessary to

successfully market the Mob Expelience attraction at Tropicana Hotel and Casino from

Murder, Inc. That led to a need for more operating capital, which resulted in further

breach by the placement of junior liens on Vion's and Strategic's collateral in violation of

in violation of Section 2.10 of the Merchant Cash Advance Agreement and the paragraph

captioned ''Negative Pledge" of the Merchant Security Agreement and Guaranty. Section

2.10 of the Merchant Cash Advance Agreement provides:

2.10. Working Capital Funding. Merchant shall not enter into any arrangement, agreement or commitment that relates to or involves Receipts, whether. in the form of a purchase of, a loan against, or the sale or purchase of credits against, Receipts or future card or non-card sales with any party other than Purchaser.

The paragraph captioned "Negative Pledge" of the Merchant

Security Agreement and Guaranty provides:

Negative Pledge. Each of Merchant and each Guarantor agrees not to create, incur, assume, or permit to exist, directly or indirectly, any lien or other encumbrance on or with respect to any of the Collateral or Additional collateral, as applicable.

Bloom's violation of the negative covenant is confrrmed in Exhibit 7.

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1 28. The projections provided to Vion and Strategic of costs required for Murder Inc.

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diversions of the funds available for Murder Inc. to complete and operate the exhibit destroyed

the viability of the Murder Inc.

29. As a result of Bloom's fraudulent diversions, mechanic's liens were recorded on

the attraction and Tropicana Hotel and Casino's property after Vion and Strategic had paid

Murder Inc. all or substantially all of the $3,147,824.10 they funded. Those liens include, but are

not limited to:

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Bombard Electric, LLC

Hansen Mechanical Contractors, Inc.

George M. Raymond Co.

Las Vegas Awnings LLC

M.J. Dean Construction, Inc.

$701,021.50

$154,421.00

$891,521.00

$106,851.00

$4,640,732.00

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(702] 38'j-6l!1I11

30. Upon information and belief, Vion and Strategic allege that no good and

sufficient consideration existed for the transfers or any of the diversions.

31. Bloom concealed all of the diversions from Vion and Strategic when he was

required, affirmatively pursuant to the terms of the Agreements, common law duties of good

faith and fair dealing, and his fiduciary duties owed as a principal of an insolvent company to his

creditors, to disclose those breaches.

32. Concealment of Bloom's fiduciary breaches establishes a pattern of fraud upon

Vion and Strategic.

33. Vion and Strategic are informed and believes that Bloom and Farkas were

husband and wife on and before Febmary 25, 2011, the effective date of the Agreements. As

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1 such, the obligations undertaken by Bloom as a guarantor, were community obligations, not

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34. Farkas is also an alter ego receiving funds from Murder Inc. without fair

consideration in furtherance of Bloom's scheme to divert funds to his alter egos. Although

Bloom claimed Farkas performed marketing services for Murder Inc., she holds no license in

Clark County or Las Vegas and she is not identified with any entity authorized to do business in

Nevada at the Nevada Secretary of State's office. She is further liable as a fraudulent grantee.

35. Farkas is liable with Bloom to the extent of her marital community upon the

obligations represented by Bloom's guaranty and fully liable for damages arising from Bloom's

fraudulent conduct as a fraudulent grantee.

36. Vion and Strategic justifiably relied upon Bloom's misrepresentations and were

deceived by his failure to make disclosure of his wrongful acts. Vion and Strategic have been

damaged accordingly.

FmST CLAIM FOR RELIEF

(Breach of Guaranty - Jay Bloom)

37. Vion and Strategic repeat and reallege each and every allegation in Paragraphs 1

through 36 as though those allegations were set forth fully herein.

38. Bloom violated the negative covenant set forth in the Agreements as evidenced by

the encumbrances confirmed in Exhibit 7.

39. Bloom is liable upon his Merchant Security Agreement and Guaranty to Vion and

24 Strategic in the amount of all Vion's and Strategic's damages, including, but not limited to:

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1700 BANK OF AME;RICA P 300 SOUTH FOURTH sr.

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a. the full amount of receivables purchased, referred to as the "Purchased

Amount" III the Merchant Cash Advance Agreeinent (initially $3,571,995.15 and

increased to $4,092,171.46 011 March 16,2010) offset only by receipts of collections paid

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to Vion and Strategic to-date;

b. diminution of the value of its collateral through impainnent of the

company's ability to market the attraction creating both reduction of visitor volume and

cutting short the duration of future receipts; and

c. exemplary damages as may be determined herein.

40. It has been necessary for Vion and &'trategic to obtain the services of an attorney

to pursue this claim and they are entitled to cover reasonable attorney's fees therefore.

SECOND CLAIM FOR RELIEF

(Breach of Guaranty - Alter Egos)

41. Vion and Strategic repeat and reallege each and every allegation in Paragraphs 1

through 40 as though those allegations were sef forth fully herein.

42. Bloom is liable to Vion and Strategic as alleged above.

43. Vion and Strategic are further entitled to an order declaring Eagle, Eagle

Marketing, Carolyn Farkas, A.D.D. and Order 66 all to be alter egos of Jay L. Bloom and

directly liable upon Bloom's guaranty and directly liablc for all damages caused to Vion and

Strategic by Bloom's fraud and other actions as described herein.

44. It has been necessary for Vion and Strategic to obtain the services of an attorney

to pursuc this claim and they are entitled to cover reasonable attorney's fees therefore.

THIRD CLAIM FOR RELIEF

(Breach of Fiduciary Duty and Conceabnent of Fiduciary Breach - Jay Bloom)

45. Vion and Strategic repeat and reallege each and every allegation in Pamgraphs I

through 44 as though those allegations were set forth fully herein.

46. Bloom was the principal of an insolvent company who made numerous

rriisrepresentations to Vion and Strategic to induce it to enter into the Agreements. \Vhen Bloom

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1 looted the company he failed to disclose his numerous breaches to Vion and Strategic and the

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47. Bloom owed Vion and Strategic as a fiduciary duty in his role as a principal of an

insolvent company. Giles v. General Motors Acceptance Corn., 494 FJd 865 (9th Cir. 2007).

48. Accordingly, Bloom breached both fiduciary duties and concealed fiduciary

breaches constituting fraud.

49. As a result of Bloom's breach of fiduciary duties and concealment of fiduciary

9 breaches, Vion and Strategic are entitled to recover all actual, special, and eXelJlplary damages

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50. It has been necessary for Vion and Strategic to obtain the services of an attorney

to pursue this claim and they are entitled to cover reasonable attorney's fee therefore.

FOURTH CLAIM FOR RELIEF

(Fraud" Bloom and Alter Egos)

51. Vion and Strategic repeat and reallege each and every allegation in Paragraphs 1

16 through 50 as though those allegations were set forth fully herein.

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28 UONELSAWYER

&COLUNS A.TTORNmATLAW

1100 eANK OF AMERICA PI..AZA $MI SOUTH FOURTH ST.

lA.SVE~, NEVADA 891 01 (/02) 38'l-B888

52. Murder, Inc. and Bloom have committed fraud in the inducement and have

rendered themselves insolvent through fraudulent conveyance of its property to Bloom's alter

egos or to others who hold its property wrongfully in secret trust for Bloom.

53. Vion and Strategic are entitled to recover from Bloom for fraud for all actual,

special, and exemplary damages the Court may deem appropriate.

54. Vion and Strategic are entitled to recover from Farkas, Eagle, A.D.D., and Order

66 as Blooms alter egos for fraud and as fraudulent grantees for all actual, special, and

exemplary damages the Court may deem appropriate.

55. Bloom's wrongful diversion of funds from Murder Inc. incmTed in large part after

Vion's and Strategic's claims arose.

120f15

Page 13: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

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. 28 UQNEI.SAWYER

&COLUNS I\ITORNEYSATLAW

1700 IlANK OF AMERICA PlAZA 300 SOUTH fOURTH ST.

LAS VEGAS, NEVllDA139101 1102) 383·81186

56. Murder Inc. did not receive a reasonably equivalent value in exchange for these

diversions and Murder Inc. was insolvent at the time the diversions were made or was rendered

insolvent as a result of the diversions.

57. The diversions without consideration not only demonstrate that Farkas, Eagle

A.D.D., Eagle Marketing, and Order 66 are Bloom's alter egos, but the diversions themselves

constitute fraudulent transfers under NRS 112.190.

58. Vion and Strategic are entitled to recover judgment for the value of the assets

transferred up to the amount of their claims pursuant to NRS 112.220(2) and otherwise as a

remedy for fraud as recognition of the alter ego status of Farkas, Eagle, A.D.D., Eagle

Marketing, and Order 66.

59. It has been necessary for Vion and Strategic to obtain the services of an attorney

to pursue this claim and they are entitled to cover reasonable attorney's fees therefore.

FIFTH CLAIM FOR RELIEF

(Breach of The Covenant of Good Faith and Fair Dealing)

60. Vion and Strategic repeat and reallege each and every allegation in Paragraphs 1

through 59 as though those allegations were set forth fully herein.

61. Bloom has acted in bad faith with respect to his contractual obligations to Vion

and Strategic and Vion and Strategic are entitled to recover upon the contract-based remedy of

breach of the covenant of good faith and fair dealing.

62. As Bloom is a principal of an insolvent company, he owed fiduciary duties to

Vion and Strategic in its capacity as a creditor and therefore, Bloom is liable to Vion and

Strategic for breach of the tort-based duty to conduct himself in accordance with the obligation

of good faith and fair dealing.

63. As a result of Bloom's breach of the covenant of good faith and fair dealing, Vion

13 of 15

Page 14: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

1 and Strategic are entitled to recover all actual, special, and exemplary damages.

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28 UONELSAWYER

&COLUNS ATTORNEYS AT LAW

1700 BANK OF ,A1,la'ijeJ\; Pi.AZA 300 SOUTH fOURTH ST.

lAsVIlGAS, NEVADA 891 01 {702) 3113-0B6lI

64. Vion and Strategic are entitled to recover against Bloom for violation of duties of

good faith and fair dealing.

65. It has been necessary for Vion and Strategic to obtain the services of an attorney

to pursue this claim and they are entitled to cover reasonable attorney's fees therefore.

WHEREFORE, Vion Operations LLC and Strategic Funding Source, Inc. pray for relief

as follows:

1. For judgment against Jay L. Bloom upon its claims for breach, fraud,

fiduciary breach, concealment of fiduciary breach and violation of vadous

covenants of good faith and fair dealing for all actual, special, and

exemplary damages in excess of$10,000;

2. For an order declaring Eagle Group Holdings, LLC, Eagle Group

Marketing, LLC, Carolyn Farkas, A.D.D. Productions LLC and Order 66

LLC all to be alter egos of Jay L. Bloom;

3. For judgment based on fraud and fraudulent conveyance against Eagle

Group Holdings, LLC, Eagle Group Marketing, LLC, Carolyn Farkas,

A.D.D. Production LLC and Order 66 LLC for all actual, special, and

exemplary damages in excess of$10,000;

4. For judgment against Eagle Group Holdings, LLC, Carolyn Farkas,

A.D.D. Productions LLC, Order 66 LLC and Eagle Group Marketing,

LLC upon their claims for all actual, special, and exemplary damages in

excess of$10,000;

5. For costs incurred herein; and

14 of 15

Page 15: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

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28 LIONEL SAWYER

& COLLINS ATTORNEYSATI.AW

1700 BANK OF AMERICAP 300 SOUTH FOURTH ST.

lAS VEGAS, NEVADA 69101 (02) 3113-!6611

6. For attorney's fees incurred herein.

LIONEL SAWYER & COLLINS

# 744 rica Plaza

00 South Fourt Street Las Vegas, Nevada 89101

Attorneys for VION OPERATIONS LLC and STRATEGIC FUNDING SOURCE, INC.

-15 of 15 -

Page 16: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

EXHIBIT 1

EXHIBIT 1

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Page 17: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

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Page 19: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

....

MERCHANT CASII ADV ANCIl 4GBEEMlIN'I' TERMS AND CONDITIONS

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Page 20: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

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BOOb .Adviaur Ulli sueh infimnltioo MIlDly for the l1'Iq)OI4O ~r advising MCfGbmt and. fIAt .ll-8JVOII m -.. to not ell", ... o;Jo_1IIla1 m_ .... y pOl'101l 1:11 accarcltnOe v,lij:Q the 1«Ill8 of 1\Us 8ectioo 1.16 ~ MlXICbUllt d llaoh O~oI:ot :p.UIhorlm Purchaser ~"UIfl Iheir IU,pocliW lllmQS.in" lislfus; ur cJlenQI and in advorlDillJ BIId. :marbdng matoriala. 1.17 DfBlA'J', Mcwlnmt and _ OwnorfOtl&mnlor hereby aLllrnowltdge and aat" fbat: Putohnaer may be us: IIdaiDg busln~G 88" of 41d1&lrlt Jl1IMCIi 1a GOlmoo1l.ou. with. l'MioaB matle1'IJ ycW;tng 10 the itfU\liaetjon botwooU Putdwlet and Mct'OluItd:. iReludma the. :filia, (jf ucc.l :finJ.llehtS atltwlGlIJs DllIl otIw nQtlco;s orfillDgl. 1.18 l!Wppsi" J.t'muriion Mclduu¢ tl3d I!Wb OwncrIGQIl[IlDIgr lihlill ~ ao. eQtChalltt udl« Coltlt1!al 'UpOD rcqllfit ~~ offwBDoml .gtatmrenll mpmltnlring jho "fiIlancial condWon 6fYcn;:bnnt IImlJot

aueb. Ownerl{)\1lIr.mtor.

IL Im~RESENTA110NS, WAJlRANTIES AND COVENANU MBrclwlilllld eacn OwnerlOulltatllur ocraob ~~ Wartsuts and ,cownaut$ that II: of fha daW of Illil .Agn:cn1cnt .and on eJWh ~ dQring Ihc teml of fhla

"II«"""" 2..1 'FJMe'diaJ QmdUWIl mn] ll'btDJWltd lnfermaCiAA Ita .financial'~ co.piCII ~r whieb bavo bHI& llItrdshcd W hrohaser. and aDf flntuwlial I18tmrumU furnished CO 1t.1reMOIl£ hmafter, t\drly fClpreacm the­iiDancial oMcHdcm. of Mcrollant tm4 OJ.M OwnorlGtmnnfCl" at- 111Gb dakt$, w- .ln~ tl\Qao datoI!: tbac hils. been lID IIlllloDlil aiiveJH. Change. fimwwal Of othotwl!e, in IIUoA wndiliOli. itt Jp the opmtic.m or OW~ttiibl'p .r Mcmhant. Merohant bfts a con1hruinGt affimmtive obUglllWn. to adviso Pam::baier of ny JIlftkIriIil adwIllcI o1umgo .In ll& firumoinl oonditioo" operation ot'bWn\1't1ll.ip • .12 GovwnmtntDl Anw'f!!t"i· MOJVbmt is' and w111 .remm bI ~lia1lCe with aU In", MIl .lull vM.d pctmits,. INtb<lnzntkma mid HocallW: to ~ op~utu and klaSlt i'$ JKopoOUI.IIl:IM to ~ 1M 1IuRinM in which it.l. (lR!&a;rtly f)\&nBJId, 2,) Au!bmiptt!gRt l\4mIhant and Iha pmoo(iI) clgning full: AgrermInt 00 buhalf m Mvn:hmt, have :!WI (KJWC'£ tJ"a aulbruilf to tlJU:oum I&ia ~ and kl incIl. DIIIl I10d0tm the obllaatIona II. thlB Ao=monIi all ofwhlola 110,.. boon doIy ... _ "l,4 Iml.ll1lnec. MOtcihant Ml snd. will DiI'IlnWn buBintJB$'mtcnpPl:ion :bi&1\J'D.llC6 muniog Pnrolmlllll' tUJ 10.8$ payeo IWI1. il&JitlOilal inaan:d in auoh amounli and against!Wlb. 'dika BIll. IIi1I ... tW8c!nry to Pmob8RC£ and shall jlIDVidll' 'PProlNlm' proof of Judi. iD~ "'POlL ",,-:1..5 Mmyltant Prnsnjng AmmoomnW M1!rcbanf lkpmtH Ammgemmu. VTIlhuui J'lll'OhaM'a ptlor IVflttn. eooJIcnt, MudtW wlll not: (I) ~ fhc.1I:aD1 proooll8OllbltJU8h whiob I:Jh\ RoocIpta are sottlod :hm ~CDOt' to an<Itlw cud ptOOOIBOIt. (ii) ohllJ:l.SU ib. otmronto chUck prt>ODe8Dr to .. otectmnw ehcck protoRQl' mit IIl'pfQvad by Pmalmm:t (ill) »OMllt IID1 cyent to i1~ 1bn ooutd IIlIUIBO dlvctJi.oll tJf In)' of Mcrohmt"a catd ~iiom~1JOt' to ano1het catd ptt,lCtf,ot; (iv) permit IIII)' ~m 10 occur that oou.ki an:IlkI dtvemion of 1Ul1 of Merclulltt'.a o1c:clro1l~ M~k lrBnSlLCtWI1I to Ill1 ~ic Clhcck. proI:C8IOl' lIot ~ by }t$h1lll0l; (v) d1a~ ill! IIrcmgcmentll with ~ CD' 1IDI0tId 11m Morcbant bocalIalng Agt:ewnmtiD. anywaythKth ad~ to~ (vi) clWUlg(; 1m IIUaIlpll10ftts with Dank or ita dccb:omo _'k proceRSQI' OJ ame.wl the Cbauk: 'PtvlilouiBs ~ in any way Ihct ill ~ to p~ (vlO add cani or el~ IIheGk procen1n1 ~tutltW8; (viiI) use rnuklplD cml or c1eUmnic cn«lit proc:euing ~1t; (il[) dmdp lt$ 6mmcl.a1 hlltiPUiDn (Jr bank

""""",<.J ( .............. _ / COOf<gj ......... ; if "llJ)Iloobl~ ad Iho ACH~; (.) .. ~. "'y._ 1IQ11oo tim aHllcl haw any BdvenIe on'\I¢, ulll'lll M&m!lmnt".. obUplJOIJi Tmdm- 1hi11 Agrccmallt 01: hn:btor'l mtm'cllt In tI1C R""Iltpta; or (xi) tako nIlY IIctiont :&11 to- tab Illy aoOon. or oife,r fill}' iu.eontln-­cconomio or uthuz:w1a&-thD.Rlsult otwhioh oould bil' to dtscQm:ago Ihu UIICI of cards ihU llJe SI':tI1e4 lhrough ProccftllOl or tim 'U8e or t)~Q 1Ih1'flk4 iblll a:tJ; .0000od lIm>uab .. <1 .... ,"" __ .. or 'P1'Rl""l b.9 Pwalmaar. tit to ~ ;my O\1I1WI'IHIII to .PIU' WJ 'Merclmat's: l8l'Vkea w/.tb. lII1f JIKlIlllB olluv dtaa ~OO8 that are &IIItled fiu:OIlgh 1'ro00881X' vr electronic dxcb tlIat J10 6OIt1~ tbtough an dI:clJ:onlc Iihotk ptOOOi~ npproyc4 by Pu~r. . (It' pm:nb: PJ\Y -ayW to mrou 1:3uG oould. 1IayCi till tdvet1IO etDlot 011 1M Ultl lUlOOJl:Otoe) Ql' anthPrl2lllion at ,cmdll or DlwI«uuli.J cbCOk$ for the purchaao of ~5 .lIIIrvWoa and ptOOuCfL 2.6 Qu~nge flf Nttmlt rrt Lmmti!m,. MQRlbm:d wl11 not ~ lIB bulm:IlII!I muier ~ nuno other than. 88 disGloml1o 'ProI;msor. Bs, ColooiBl ami Priuar ordlllllgll ouyofilaplacoll o:f'buslnus. 3.-'1 DRny lJ@t~lI Out. Mcrahont will bak:h wt Card ~ WllhProGeGSOlon J: dill.)' baBh. 1.8 E!tmmcl 9tfl"!!!tt- Meroha.at w.ill at.au)' time, ondlmm _tolJJn., upoo .U ... t",,(~la.."o pdor notIoe ft'aM eJlbcr .PorWaor to MtilMant, aewm, aoknowlcdgo IIllIl dcli~or to ~ PwibaI!Ol an4IoJ'"1O ~1l)' Qiher pCQml~ fum or cmpDlllllon speaificd brsuwh PumhWl'; I'll~ GcdlfYia,g Ihnt IhiB A,pontrml is llM'iOdIflt:d and in iilll fil1'OC .mI cffiIGt (ct. 1£ tIwR! hllWe bOlA mo4it1~, did dlo IiIImD 11 ill lblI 101(10 and ef'&ct HI' lIlUlJ[ficli and :smtUqr Illo- modiilcntiom) _00 IIIRting !he. d&fCI im whklh 11m "PurobilSOO AmuuW; or .. ypmtlon ll=IDf ... tx.n poi<!.

_ of 1h1o __ "" o1Wl, if

u:quc:sk:d. by PIlfd:lasor, drilmr to turclwCl un IIXflCUIfld Coofumdon of JoogmCllt (llic "Confe.yjoo ill li1<l&mmI!"). In !be r."" provided by PJUdwlI". In • DNor of ~eI' in ibu IJIJllJU.I!t of the Pur(lilued .......... . l.U D!1inrypf·Anigrrment DfLeag. MllI'chantand each. Ownwo~ authorize. Pticalwar to retlelve periloott _on """inS Ibc ~ 1001. l\u' ... pbyoloal .... ll<m(8) ofMmo .............. (!he ~!rom >If'J opplioobl. IeosIna com!",,>, a.d Of ill8ent. MnrcllllIll may 'be axkcd 11l detiv« lQo Pu.rohu.&w iIIt ~ MSi;;tmultrt fJtl.casa 11119~ an ofMm:brmtl" tight, Il& aDd ~1n nud to tho; PIemim;: and vmiee tW leaae 1br tho }ttemfscB ro PurchaIDr (Ihc" Aaigtmwnt nfh!!l!"? 2.16 Sate (If RHam@,,_ ~lD1t theU not £ClI, diapoao, h'IInsfbr 0 .. oIhmvisc ~ 11& bualnelll or BiRClia w:iUumt {i) the Cltp(C18 prior wriIbm -tIC.I.NGl\t of _00"'. and (I~ '1>0 _ ."""""." of ... pm:oharicr or' tnmr;:£i:;rl,,~ JUlIIUllling .n of M~Jwu" .. obl!gatlona ...... !lUI .........,mt P"""''' .. doIlmncnhllion IIAtiIrlactoty to hroballl!Jt. 2.17 BrJdgt I Cbtt!niI Meant. If MembIlt!: 18 _1m! to _ • Erid8" I C.,.... ""_; til Mrilllll win noli- UtilCl:ll. 01hetwiBD -directud ill; wtJUng by Pmdm!IK, 1ako my II~ Ifi elUlIe tho: Specified ~ ~1hc aettIolnont mDOIlDtI Itt be $tlU:le<l tlr dtlivcte4 to .any \!C4ll,luut qdwr 111M. too Bridge I Coatml ActO'id; awl (il) Mcnilill.ltl will C1 all tlmell .,.;rum. .... M101mum ll,w". btlho lIrldgo / C<mIroI AcclODIlt. :1.11 Ute or PrnceMI. M«ollant will ~tt $t.$ lnuciMll8 lind use tho Pon:bu.o PriatI in ~ orilinary ~\Jl'lla ol.il! buHintl:a. WIIIIimM with p~Mp1'illcCU:e. 2,1~ Amwllf.y of InfmDlltWu. All inWmPtion provide<! by MoJelant and "'" _, 10

l'ur<>1",,' baioio. In lb. MoN1>m' S"","", A __ aOO Guamdf, and.ll'l. WJ.otber cb;utMGUI ~illltlRld fl1 COOI1OCtion "161 IN\ weemcnt£ at ulatcd to II\1Cll. IlgrecfllCDtB ... ~ IlCO\'I[IWl .IllId ~ III Bl1 ........

z.~ No 1J.l1kntptsI, M~ hBs :DOt 'fikd any petitiOJlfot blmkrup\:l1)' ~ mulcrTi11c 11 alb £.InImd Stato& Code, no invofuntaty pmi!mn :fur _ bo. bowl _ ... or I. pODding 'Il­M'OIUf, Meroblll1t hDll 1\0\ adtnlltfll In writlng il& 1wIiltUi~ 1D pB}' jill: ddIrt8 at DIfIdo- .. a=amlllll!dgnmmrt: ~ 0110 b .. o!lt of _ ..... and no ""'" J'lO""'dInj[ .... been _tulad by or IIPWt l:.ffttdlalli aafdng to ill. EVENTS OFDEli'AUL'J: A.N».REMEDIES attiodl.cato -jI; iDlolvant -or BUddlll ~ 3.1 innis of Default. Tho 00Qf(I1lCC of IllY ut Iho ~rpna.oiJ lIijullmOllt or c:ompoaUion of h or Jfs 1bl1owiDg cve.nbI &hall ttl);Rj,liM, M IoIf.YMt of Dcfhu,lf dWtfi, :MGmkeat 4oa. Mt 1HItlc1.patc filing lID.)' rruiIh lIat~ (a) McrohInt ot any 01VDCD'Guun.nfor _l'IlU~ pdill notaWMe and. bllllUl fOiIlDll mid!. any mm. fl(lV(lJlll1l1; « conditIon in Ihk &0 bllliovo that .ny 811m \laIWupmy .IIctitiOIl or ottm Af,tc.onI~ fhe Mefolutnl SwI!rily Agr<l.lfDC!nt ana ~,,",OOfilo<lNlmml!l<l.ga1""1t a.......yor'''101hor_'w1tb.''''''~ 2.10 WOTldng Caplnl Fnndln8. Mmant shall U(lt (b) any ~mWlon or wm:mnb' bJr Mcrnl~ or 1mY onte.r jota lUI,)' ~ ~ Dr ~ Ownur/GlimlDlOI in thla Aamlmont, tho Men:hJDt 1bal: R1akIIi itI-tIr involvot R~~ whathor _1M fcm Scwrlty AgtccmDlll; Ildr;t ~ In' 118)' ather ofa ~Qf. alomttgaWt. Ot fhc ole or JfIll'CbaR ~t. willi eilhm: ~ .Imll jlItM:- to 'ha.ve m .alii! Illllw.t;. Jleccipt& CIt Iiltom tud ct non-oarcl bQoI1 ~ Inoompldc, iiIJat:I r;tt m1eloadmg bl ;tny ankawi.thanypad)l"otb«1lum~. ,I:!ilI.btrild ftII'peci 1¥h1lll Imtd.tI; (iJ) MOlChant OJ' '01 2.11 UneDetnDmd ReSelpfb Men:hlmt Mil SOOiiaud 0wnctIGt.uunIlt admila in ~ its ~ to pay JIlOIblJlbJa tllto- 'III aU Recolptt, h aad c1ear of an;y iiII debll,. Ol'makN" .KJIIIIDIuui~ttorthcbCllont ami .. ll1obIU .... _. oW..., -............... "' ....... m; "' .... ..,....u.s w~ be IPoUiuI<d by., oond"Uiona, ""floos. rla'l~ .... """"" ....ntr qaimt M<oIhonl or "'" 0_ ...Jd", .. ~!d, tlquWCI,. ptedgcm amd. moumbtnGoil of rmy BCijLldklldl:l it baDkmpt 0' inmlvwdJ (I( lIaddna: klm1 or llDturtI, '\V~« or 1m)' oIhar r:ightt or tcOJgm1mIimI. nm~m. mijluIllntU1I;. or mtmeeIa that IlIBf be im.:lDilili'lm" 'Io'rifbIIt:O ~1IIIC&mr: compolli-lhlll mil: -or 111l dobb; (0);Jny o~ ~1atccl wJfu, or :od~ to the mtlnellta of;, ,omt. .. llCI1:!co of totmhlation or 1M Mluchant Scoutlty Putobuct- A,gmcmcnt and (A1I.rt.llty; (c) M~ IlUIlPllDds, 2J2 ltuJIneu lpmo't. M¢tCIlant 18 a VDful businOJl~ diGsolRi! or tmnimIl.tl$ its: bwm:sIOj {i} Mcrolumt se11a in gqQd itaniling VIldcr Iho: laws of tJw jurlidl:ctlooB !u all. or M:lbl;l:IInll1i1ly IiU. of jts assets; (e) Mereblllt mnbm l't'hmh it It 1KgM1ztd. aodlor IJp~ IUld Memw:.t il ~r ucnds 1lOb of q In~ lrulkl\akl QtttID\lfot by ID.Il.tmns into thil(.A.~ for 1nWm:uR puzposea WId ~1lDI; (Ji) M~Im\ pcdhmlll BII)' 80t that nihleoa. .oo[ III a o.:!CIfII]JJ]Dr fO£ pcItIIOt1lll. littuily or bcu&u1lOld- , tie 'Vi!:h:IlJ of' tho CollatmU or iI1w ~I.y Sntenl&l ~oee/I. SJUkd in abe: CoUllmml 'UDClAlr thu ~nt S~ 2.1! UeJault Under Ofltrr CgnltAeli· Ii!lerdtIat'JI A~ II;M1 <hl.Qnlnty; ro ~ Owzwr!(h1~ntor aecutionofarpcd'otmallCe;l,PldcrtblsAgreemenl:wln p«i'bnnJ a!I.)' 1!;ct- 1hat :tIIiduwf h \'~ .ot" the bOt caute Dr cream my bJvM1h ot de.fIwlt by MwcbauC- AddItiooal OOal8rJ1 (as dellne4 jp fbI) ),{orn'hant uOOeranyconlr&ctwHhIblOfuClOpumxIlO1'wtit1. ~ ~ and Gumml:y) or the SCI;IUWY 2..14 IkIlimy or Crud'tmgn of "Prlmm!!t, u,cw. ~ poled la Iho ,Addilioaal Cutkiltom 'UD1lar ti,1I-

Page 21: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

Mmc1tant Scunrlt)t A~t ru&d. Ouamnty: or (j) Merchant or illY Owncr{QuAmnlOI" .doflnJ11a uadflf any <If Iba _ ......... and __ <If "'" .Ihot Qg~~~ eitlw PlXI.'Obawr. 3.2 ~ 'Upoa. Ibt:s QOOU£lCDCe of ml lWmt of Default. Uwt b/. not ~ PI:U'aQant to Sclmcn 4,4 hOl'tla~ Pnrcbuacr' 1IIllY prm!etd lQ pmtGat. put onfurGc! il$ riabi:a or ~ica by mdt ill ~u1I14)r by aotion I!d;: law, or 'both, wMthor fur ill", _pJUffic lIM"QDDImoo of any "'~l'1IiI1tJ ngro~mont or ofhar 'PtCIVisi0t1 coatlUl)cd btlrdn, ot 10 onf'oroo !be porAlIIDalll» of M~JJ 1m\!. oUItOh Ow~e/Guamnlnl:'1i IJbltsatiollll ~ underlba M"o1ton'~ ...... ...-.... 00",,",'1, ar putllUtt$ W any othsr 1a8llt or Gqultabl.." risht OX nmWy. tJ])Ol1 Pnrobnller'a norn:c to MoroluilLt" o£.any Bvcni: of nctlwl.~ thtI ontim furchWlN Amount nnl o'!.lrJ,llldy pM4 to l'urehllBCf .man boo!lmO immctIllaWy duo; and payabltt to -Plll'Clhltfllll'. In &dd~ \WOfi tit!. :n~t of DlMult ~) :Por<IhDsor ImJY enforce !be _101"", <If Iba Mom- _'1 "-""'" >nd Goa .. .". ...... '.,.b 0wmm'G_ (itl " ... "", _ """""" IU ..... 11;> 1_ Jo III. c;o!bo1mGl .... AddIIlona! Culi_~ (llQ l,"- II>&)' dobi< M"';'ooJ!, dcp<W1 .- _ ....... by melli3 of ACH -d00it or :fhcIirn)le signulum OIl a comyutcr-aon~ abeok MWI! aD. ~rll bank 4WIXlMl Qt othorwiMt; (iv) .PuDlbl'lGor ma.y el11er tho CoidamOlt of ;fm1gmcnt as a julI.gtI1en!: vnlh tho "PP ......... Cl<oU <If"""" .. d ....... lhmtm; "'" ('/) Pmlhaler may exorol&a 1m riglltI; umJer tb\l' AAIpmmt ofLeasc. Allri~pmrm'SADdIllDlCdie8 of'~ In OODILli:Gtion '1YHh dWl A.groomont aml1ho M8r0hant Stloor~ AgrecmcDt tmd Ouaranty R'I£I)' biI ~jm at. any til:DO by Puroila!Je:r afttlr tIlo oorJUmlaca of JIll :nVWI.~ ofDofsWt,. -are GUmUl.u~ moot ftGl~ and. sholl bII 1ft addition to liD.)' otbar ritbta. pDWCIB « mllBdw" provklod.bylllw'IU C'Ilulty~ 3,3 !:lWL M.",bnl wul """ 0Wn0l1<lu0""." RIIan pay iii eaOO. PuNbI1JOt aU C05Ia t'ClW:IlltUribly i~a by lIuch Purchw;;r 10. oDlllWOtkt/\ wi&. (a) any nvc:nt of n.tault fDclwl"", wldood E ..... "'" "'" .... ob by Mft'crumt- or any ~ of 1M l'OpnlHl11lfttlons. wammueo ana cllVCDilIIl$ In Ibt; AsOOlll1llHlt or IbIJ Mmlhtdt Secnrlty Agtcol\\(l,nf: lUld """''1, ",d (b) ... -"", <If p,.,;,,,,,, ......nos ... _la ....... 3,2 ."'.~ltI ... '"'" but naUlb:ill.cd tv 1I:OUd; ~(HI15 .md 1IttOlMy&' fi:cII. 3.4 lb!gu.lrnl NoMS!tro.UB. M'trehant and _ .... OWQeJ"JOwaraotDr :man 8-hit Mdt hrmmr wrl~n IlCIilt& wlihiD 2411lillun of any mng bf M01'(haut tI' .ny OWl1ertc-ur~ lIlIdv 'Ii8$: 11 otibe Ulliltd $tIib$ Code .r of tile OCCUZ'RIH:c of "4)' "'w.- e.wu.t .ae~cr.ibed III Soetla. 3.1(~) ltenol. M..tob-.&t :lbll :11ft eaeh 'urehRler H\'\IG dlq'.' wrllt. aautO prl9l' it) the dolIlnll .r any .aIe of aU CII' ftbstantiaDy an .,r Melnhant'lli au:ili or liuek. Mircballt .'baD alw *b Purchaser seven "1tJB' writtv-.. aotlR prior to Ute IDlpiintlOllt 4tJ,ollltian or tor.lnatloDlil ibI }twlnen. 3.5 Da"ult Waiver FEe. ~ ~t ~ l'nrobaaor n18f Dllo~ In Jts .101c _ret1OJ:1 *0 waive 1lw ocomrcneo of tn Imatl IJf ~1t under this A_ '" tfu> __ , S"","", A_ ond Guanntyp providod. Ibul Mftoh&DI: daallll~ .. ctomult -,tail'or ~ (fho tlplrljult: WAlytt Fm, fur anch mdt warnr ill thel Qll1oQ1l.1)!of $2,500.00 10 PnrdillMlt, wb~ IlIDO\lllt IIlIaU bo du\lI and. lIa)"1bkl eo- PuRJha.aer on demand. Suoh Dttiirutc Waiyl:ll' F/:Ie 1Ib.1U1 ba l$YoIIble f4f eooJl E'IQIlt of DufP:ult OWua1ng wtllIt' iblt. Agremtmt M'" M_ Soclltily Age'"""'''''' 0 ... ...". arul WBived pumilIll~lD-tbls ~W13.5~andltO MU;h walvot otan Bvtnt.ofUvfiJ\1b nlWl mMIY waybo ~III II. w!dvor by PunmMflt o! my Q1het ClCC1lU'8OO8 of an ~ ofJJefiri~lt, or 116 oiIu:nIla! limiting ~, nghb; IK" 11InW<liq pwvidtld tor horaundur. undot lito 'MlltdJant Sewdty AI~mMl(Jl$mttyl ar by law

_1\2..25-11 SI'S-VION MCA-ACH MA

orequl\v. 3.6 ltg_or Change 'J!e' Mm:chmtt lib'll pil1 a p ........ oIwJa> foo (tho ''P..,.""... "'_ Fod') to Pumhaacr in. the amomtl of $3,000.00 in 1h.o cwcmt that MotOboni (i) Uft_ mtillipla ~ pJQO~&1nB: tormbWs _!be pDm _ ....... of _r, 00 obtInSo. b oanJ j)lOOOJ!Of wlthouI: the prior wrlttm 0DDiImI IlfPmdwcr til' (iii) din:W Proccssorto Ihdiwt ~Jrt amounlB CO any ttmtunt othu 1han tim Il<\ag. I eooU<ll A ...... , (if Metdwu]a "'l"imI .. ..... Jlrldoo I C_ ""~ Suoh .......... Change P.oo (i) IIhIJl be dmI m Jlllr8hkl to PtIroiIBlle[

an 1kmMt~ (tI) iG aDt oxo1ulliw oft OM ~tivc with. any OIhat :bI or Bmount paid or piI)'ablt to plJldtuer by Memhtm pursuant to 1bia A~t at 1ha MmdJmt Scwrlty AIIl'Ctl.QUln,i .IIrul. ~ and (m) aballmlt bD Cllmlllrun U • wUvct of e'J1Y Bvtm ()f D&t.l'.ul.t lwmmaa: Or-~ ~ MiUObDnt Smrlt,y ~Jmd GuJrant,y or. bUII:nvlsd ~efailos"w .teIJute PX' Jtrpk :Pllmhuci',l'iglM or:wmr:d"a proviW 1b< """"""",..a., Iho M"';'aot Sooorily "-""" lind 0uiu:anIy or atlaw or ill equity. 3.7 MtlttD!@eoy,' ServiS! 'Feg. MelWcmt'!!ban pay 10 Colonial for SCII"'irioru; m1Jtted .to Ihii Aattemm lbo &0& Mit fcrthnn 1h6 allacbcdfi= achcdulc.

'tltIlmMI :IUIl!IO atu1 M~ ruu:t ldootfficadon of prl ... J."Is ........ I __ b.r,1>< .. _t<d far onCI ut more f)£ the rc/UiOlU5 :&ptcifi~.in M.atcrCJttd or VISA opOI8tin, ~tlOIi1. SllclLMlillam 1ntludOt but • ... notllmilod ... ~_",r.lt_, ~ k~naaoI1~ a,«I:\Iitw ~~kt InII reIXk:Ya1 ,....... .. monoy laundalDg, .. >limo .,1~ ,...ntr ,;,< """', :M&IICH.I.~T ACKNOWLEDGES THAT ~Il0CE8SOll MID PURCHASEll ARE RRQln1mD TO REP<JJn' 1l1ll ~USINI1SS NAME Ol' MRaCHANT AND 'rIlE NAMIS AND lDUTJl!ICATION OJ'ITS PlUllCl~AL8 TO 'I'l!J< TMI" WIlEN .I. MERCH~1'!T JS TElUIIlNATllD FOil 0l'Il! OIl MORE OF l1IlIl It-...sONS SPlICMEIl IN MASTEIlC\RD OR '\IIBA OI>_G REGllL.l.TlONS. MIlRCHANT :en_V AGllJ:ES AN]) CONSlINTS TO SIJClI lIltI'ORTlNG BY l'ltOCXHSOU. AND I'llB.CIWW.t AND ru;:LMBI<S EACIl nOM ANY DAMAGES FOR DOlI'lG SO 1M GOOD FAl'l'lL 4.7 1IfntUpR )jirrHC Cl!m(n!rtc LAw. Venu! md JnrilIiRrUon. Thla ~ &lid !he Mcnihant _, ~ ... Q-oomnIy _ 1>0 blodmg

"llpf»l ODd imlIO to tho bllMfit. DC ~t. tI:IOh ~, Pur<lh!l.m' .and thWr rosp«ltl.w

lV.~US • _,~ IIQCCe1111CDtII1dastlg.nl,pccpttblltM~11tandtl!lQh 4.1 MntH6!!l!t19mu Am,!!&,; No roo(1lflo¥Jon~ Ow1IerlGuarantor alm11 not have thtrlgbt In ~&O IhcIr 8IIIelIIdmaIl.l.,Cltw'VJ)tnffIIYprovl'lirrnQitQr(lllmcottu rl&1M ,bemmdac (ll'11l1Qcr 1ho Metcltant SuGttdty any action lUIdor,. thil AgrecmmJl iIr 1ht Mml1:wmt ~0Q:\0Ilt. IIld ~ Of an.)' intelBlt herein or Socutlty ~ ami. Ouu.mnty Dan be ~w bRill widmIrt the prior wrlI:tcn CC)t}~t of Purc:hrumr lIDltIIo 111o ,"mo 1. iD"I'1tlna:JQIl"Tpcd byPurdwor. w11loh oon,cnt lIIuy bo wUbheta in l'urollllll'llrta aolt; "'2As!kra_t.ltadiPurdla&m'IM1J18"~i(Im&fmocr diIImntm.1Yuih~:may Nsl&u hi rilJbIB Blldfm: MU ita rlghls 10 molvo itI Ihllfe or tho :p~a CIb11~ uDdM 6riI;; J4p'0ment aJldJm: tha Merobmt. AmQUfIl ~ ddca* ita dillies bemmcIort ~M' m. whok Sec::w:itg AgmmIlnt and 6uDnIy 1n wbot~ or in JUotL OlmPlJt wltbout prlor nodOll to Merobsnt IIr My 4.3 ~AU ~tiod, JilqUCll!, fIOIIs~dmnandR and. ~ 'l'hls Agm:mmt and lhQ l.4DmhanC oIIw cormnuuioatione :herwndtr end: WIIb tho ~ Aa1~lblt IIInd Ouftftllt:y Wll be gowmtd.1)y ~kW: aa-wity" Agm:uumi and. GiLIlI'4llly Wli be mil 00II1I1nied in Icoordmli:ll 'Wit.b 11\0. 1a.Wf of the Stlh5 dollvDtOd. b)1 o01lUioi1 ma~ ntum RIImpt ~ to ~Ymk, wiihout .tejJatd,1o any appUoablll Wllffigls 1hc -nmpooliw ,iliUm. 10 thUs ~t al)l) t:bt ot'lawJldnclplCl.Any.llits .. Ii~«~eoodlnaatbdDg l\krdamI: Secudly ~ and Ou.Jattd)l at the hlltOll!ldcr (I{ 1llldcr ~o MmWant Sewrity AgtflllMOl1t ~ Jet Anlh.\n 1hk Agteem~ Wld shall bCWhla Md Guaranty. or the ~on, ptdb.r:m.BnGC {Ir ~voon1y upoo~ breP.Olt bercofor thtna~ aball,lfPmdliilot' '0 ~lccb. b. ".4 WaiY!r 'R1}l'!ti;illt6. No :CaIkIm on thD pmt of in8.t;itQte4idJiJ\)'oo.Ift~mNcwy[Jrk.NewYodrJ PIlrobucr 10 UllCtd.o, :and no delay ill ~ nny (die qAet;epf&!ilp T'I1l1lt)i'f). Banh ofMotdlant IIIld oaoh rf8bI: ~ (hill Agmm:Dlt or tM MtlrcbIlDi: 8CWkity OwmrJoum:81I1Or IIgte081 that 1m)' ulato tlr filtWmJ annt ~ ~ Gllullllf¥ sholl o.pendO AI a w,livw IIitt1tIa In. tho Aucel'llbl\l! POnml lB Q(lJ).WtdML tit 11; dunoo~ ILO! Iilmn aar lIfJI,gt, W l'utiBl cxmclse of ~ 1b'!reb)' irmOcably 1IItd unoorutitioooJly wlunit&: 10 !be riaM lmckt QdIJ ~11t fll' 1ho .Merohant &c\Uity petsllIIAI jQr.i'c1ktL.ui of' fI!J'I sulll! comt 1if\rJ. Hemby A~ and. Oumwtypm~ llD,)'oUwr ocfbdhllr waiVlll NIy aM all OlJjlloVOJ;S to ;Judsdlcliml.-ot 'I'OI'l\lO. euroiJo ihm:of" or tho GKGfUisu ul ~ oUIct riaht. ~ Badl of 'M&'ohant and each Owm:UOuamdOl' &g«IOJI.

Tcmedi1!J pn:rv:l.ded bemmda: :and lU1dtt tho N~~ that is iiDlll .fti6sment in my llIIlh 1iUit,. illGt1'an. or Seomity AgtOCImCliat ~d. ~ 'ItO OUInUlftllvo Md prococding brought in mrt JUCh (lggf; .hwl be Jl(Il: e;xc:hmiw of a.y remttdica llwvklc:1l \7 lui or GonnlusIvc aud binding llpUd I$UOh ~y and..IImY ~ equ.l.ty. ~.in any othdr ~ to 'WMBD jumdit;iian such 4.5 S9!Jslhttlgu. Mertbrlnl and each OwnctIGumaIror- party M or nwy bo wl\1eolt by BIIiJ: upon JUCb. judgmel1t. aulltru:Ws Purobawr and m afftllaloa to co1IlDl1Wica1e SOOnbiIllIOh suit. IICtitm or pro~.8' ~ initlatW. m with. &OlLclt IiId /or rrmrkd lo MEmhau1: and each arJ1 olhct anum. M"omMnt Im4 UGh OwtI,erIQumUIDI" Owmm'Guamntar vii ~ mati,. tc:lcjIhonc. c:mail am! WMYI IllY :tl&ht 'kt OFPClJle: BUy molion or IIppl1clltJon 'fatltImllo :In o~on with ~ ]lrov~1on at CODds t)J.' m.m:» by ~cr ,"rOOQOr ta iIanKfu 3UGh lUll. Jofioo. til' 11«1'.10011 by .Put~, iC:aJ idWiAt.uI Of Ilfty tbkd party procccdingtu IlwMl~'Pamm. ' 1hN h~BSeC' PIfOit tmnsfbr&, I:IMhangeI. dilclo!os. M 4.8 Suryml ,e !WrCllltn~ljgn. etc. All -provkloB Int'orJnnIkm with an4 wW I\olc2 ~rclwm') ilJ; 1'Qp~, ~ Md ooViIIUIDIS b,or:eIn and in 1IffWutes Md suoh tid ... parikus Jllumle. npfnlt any file MeWIHl St:ourlty AgreDmail IIDd. G\Jp'poty .sbJ.U aml all claiDu PllJlUW to 11'10 ibdeml cAN'--SPAM Acr t\.1l"Yl\lt thf ~1lIJtiOn :and &lllffilY of ~ia ~t of lOlll (C,_"8 lb. _ of N~a ODd ... ,.;,,.."" Seomily A_ mliI_ PomogrBplt)t md MMkdJ.nc Ad; of 2003). lhP .Ild IIIwlI wrllldUC in :full tDrco um:1l 3D. vbJitpllons Tol~ CotIIlImlM P.rotvcdun Aot (J,'Cl'A), artd My UlIdot thhr A~t md. Illo Mcn:buat &:lIIltitv 1M aD. ulbur I~ ot ~ laws mating to Ael'CM1I1m and OWltBllly IhaU haVCI 'bQ\lil nUtifiOO in tmnIlnrlRBWMorao1icita!iOJUlbyarad.any(d'tOOmothods full and tw. A.g.tee.ment and. the Mg~ Bj)C'Iirily dllsllti'bod allovo. AgrCllllKltd; wt Oulll'Bllly shan 1P.Yc h:nu.iruLM 4.6 'l'ennIDamr IH'f!rt:hp' Fife ppd MaWb fik- 4.9 SnyymbiDty. .In CBRII an;y of iJo. provillkms ilL thi9 M~Ult cxptQlfjly acbtowkdgtll dUll ,. T«mJtWed. Agme.tnUDt or tho Merolw1t Sccudty A&f~ lind M~ File C'lME.":), or ad)' ~ ibmIlo, is OUiUiIIl'i1iJt.iaundwboinval1d.11Icgelorlllloo£'on:eab1e 1l'OIlo_ 1»' M....,.;..d M VJS~ .... ""ntog !he Jo ""1 m",,' ... ",lldlly,lopi\ly and ooror...,ruty

Page 22: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

I

I

of lIlY ofil.'lIr lWov1sian coo1aklod ncmn or tbOmln Bhatt not-hl any W"1 W. affected or impaired. 4.10 Efpfits AIll'AAIlI<"'It AnyprorWonh«oo£orDfthv M.,rul~ ~ecur1ty AQ1~~ ami aUl1If;IInty pmhlbltc'4 by law .&hill] be- inetrcttiw only &:! the aruent of lid ptOblbitlDD. wilboQt itm11Watiug Utll mmainhlg provmoM hordo! Dr tber(loJ;. 1bIJ ~ m til(:: Mmlmnt S.,.,..](y ~ ami Guo ..... ombruIy Iho ImtirC' I~ \)j;lWGtIl MimiIam, ~ Ow.aCJlOuanintor lind P~and w~ vll prig!;­IlHn:omcmbl IIhd undcml&ndings relatIPg to tile IJDbjcut matlar lwoof. 4,11 mRf TRIAL WAtyE1L TIlE rAlmES HlIiUlTO WAIVE 'l'RIA.L BY JUI\Y J;N Am' COURT IN AN~ 8VlT, ACTION OIl PlWCI!llJ>II'IG ON ,\.~ MAttER ,\.RTSlNGII'I CONNIlC'llON WlTIl OR IN .!.Nll W,\.y RELATED 1'0 'l'IIIS .I.G~ OR TIDl MERCHANT SECVlUTlI AGRmr.MlOIIT ANI> <lVAI<~'l'Y OR TIlE TlIANSACllONS CONTEMPLATED 1IERID!Y OR THEREBY OR nmENFonEC£MliW' _II OR TlIEREOF. TlI.& PAlll"mS lmlIBTO ACKNOWLEl>Gll 'l'lIAT EACH MAKItS 1'IIIlI WAIVER KNt)WlNGLY, WILLINGLY, VOl.UNTAlULY ANI> wn1lOUT DVllESS, AND O>;Ly AFl'JOl EXTENBlVl< CONBlI>EaA"J.'IlX< OF TIm RAmFlCA'IlOMS OM THl5 'W.AlVJlR WlTHl'1'8 AUORNEYS. 4.U mE PAllTIES

.!.Ny AS'\'

REPBll8I'NTATlV"E OR MEMB>lll IN AllY CLASS all llEPlIESlUITATJ.VE ACTION, EXCilI'T WHER& SliCH WAlV"" .. l'ROllIJJl1'm) BY LAW. TO Till! &lCl"BNT ANY PAB.n'IS PEJUoiITTED BY LAW 011. CVlJl/J OF LAW TO l'ROCJtW) WITH A CLASS OR lWPlUlllENT"TlVE "CTI0N AGAINST ANOTIIl1.It I'AETY, TIm pAImJI:1I _TO AGIlEl;l Tllol.T' (I) THl' PlllWAlL1NG PAJI.TY SHALL NOT lIE J;NTlTLXD TO BEOO\>m oI.TTOIINElIlI' FE'IS OR COSTS ASSOCIATED wrm 1'\lR8llING TOE CU., OIl lIEl'\U!iJlN'r~ AmIDN (N01wllB$'1'ANDlNG J\~Y OTIIER PII.OVI810N IN mIll ,\.GRElIMENT OR TIll' MEllClIANT SE<!lJRnY AGIlEEMIINT ~D GlliUlANTY» .!.ND (2) TOE l'AltTY WIlO INlTlATI'S OR rARTlCIPATES AS A_ ())" TJIE CLASS WILL NOT SlJlIMlT A CLAIM OR OT/JERWlSII> PAlmClpA"\"E IN ANY JlECOVJ'Ry 8ItCmID THROUGH ~m: CLASS ORIIBPRllIIE1'lTATlVJ!ACTlON. 4.U AmJlhItPilrtm laf.hnUli antI Tp' Aqept!lJ!Si.\ This Apwneut fi~ lha MauhMt &loudly A~lDfIDt _ Guammy my"o axooLlWl11n ~~ ~or wIoloh ___ .. origIaal, but III of ",hlob

10~ Ihall ecmsl.ibdc mlC InMmnmnt SigMhlK:III-oIl ",I< ~...d tho Meo:hwS",",,,, ,,_ ami Gu!mmty ... , by _. or P.DF wiU be _

uar.igin;llslpalums ror.all.PUIpOllot. D. ~

JNITIAIa>tl; 'Jf.

., --

Page 23: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

=:

,-', .,~, . ,- .. '.,

COLONIAL l!UNDlNG NETWORK, INC. FEE SCHEDuLE

Ped W.!:m FI>CI (PwehaBo'Pmo)1 Vion~

ACRTnumt'o<F •• (l'Urol!aaol'rloc), ViuA Char ..

Und"".rit;n~",a Odglnotlo • .I'Ioo (OeoWdod It .... _ Prl .. ): $4,500.<10

ll<Idg.1 Conlrol_, .. : $495.00 (ll",""""J

AClITr ... fOrF .. erraMfm _lbldgeJ Co __ toM._Op"' .... ~ 12' ....... m .....

Optlnd:ing AcootlDl ChIttlgt-'Peo: $150.00

CopyFoo(M..ol1IyS-",): NIA

Copy Fe~ (Mon1h1y SfBtCImozlUY, N/A

MdltltRLlllFees: Moolbly .ACeo'1.l.ntll. boonoiUatJ(I~ fur LVMR~tllfmllitG $SOO,IJI) &0 S1!iO.oO roa:dmIUD.

-..

Page 24: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

I, _ ,u. '" ".' • . ,' . .• , .' .. _

Tho Spccifi.ea Por~go rilltill equa110% for tlw-first $2,SOO~QOO pGl'month in:revenuet (tho "'MinhpU1!lltequiremenl'') and 7% -tistaUJ'CVi:nues in ox,.,.. of$2,~OO.OOO; ~~ lhal If$2,SOO,oOO lnJ'OllllIllKl;' notaobl"""dln "IV gi"""moI1lh!he _will b. a<ldod to the Minilnum ll<qulretnent in wocccdilIg,._ unl ... .wlonb1!he ,hortIhll h .. be ... rnnd. "', For Ol<""l'lo, (I) If "",enu" we", $2,000,000 in IllOllth ono and $3,5l)o,oOO in mo ..... !wo, 11m 10'A Sp"ifiod 1'0I00II1ap in IDonlh lwo _Id eppl,y to 1bc $2,500,000 J\n" month two p1u. tho $500,000 shortfan !tom monlh 0 .. (and tho 7' .. Speei:tiod l'orcem.ge in month two would apply to tho remaining $500,000 in molllh 1wo rown ... ) and (iQ if ICY",,"DB WClO $2.1000,(100 in ltlOnth 01l~ $2~OOO,OOO inItlcmth two, and $41000~OOO ill month tbr~ tho 10% SpeoffiedPercen~ in month three would xpplyfo theI $2,500,000 fur month thm. plwi tho $500,000 ohortfallo from month .... lIlldmonlh two (and tho 7% Spooificd 1' .... nia8l' in month three would apply 10 the :remainfuJ$500,OOO in month three revOIlucs). Revom:iell ahallmoauan uleaptOOOlldB inc~ns: lmtnot limited to tiolret sales, morchandiso 8nl~t photo sul .. 1I!1d any olh ........... ~ octivil¥ wheth ... in ...m, mock, ctcdil O1l!'d, dobil 01l!'d, prep.!d 01l!'d or.thor I\mn of poyltlanl.

~. .,

Ro_ ~~1 Sf8-VION MCA -ACIi 1M

Page 25: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

EXHIBIT 2

EXHIBIT 2

Page 26: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

I I.

.. .

Il1IATiGICJ1llI'IIIlNCBOIlIUlII,1NC.AI'«I"YIO'RoPJ3I,\,'I'l'OOIIl.l£ JIBllClTANTBZC1l.tIm' ,4.C_ iOO>OUAllANlY

MmlIouL'aLopIN_,Mm'd"laq,.IJ;C DIBIk'l'hol.:lJ"""'",b~ , P .. ~ .. I Mdt ... : 1101 'Lr!!V~,lI_ SOIlIk Cllr.Lu """. S'i""Jt ... .ra l\ij>;lIllt09

, " , , X IIICUJIIY_

8AA!!ftr Inhm T. "",IG J.kIdafl Ja)'''*'- ___ .. ~~ 10 1'1I .... .dIr11h ~ Ca'.b: AdtaIIa "'~ ~ ~ ... _ .. (Ibo""""""A"""""'_~""'''_I-"lIt_''aIl_I''"I1''IY''Jl_~''' __ __ , .......... __ ~ ... 00I~ .. """-~. "-J"""" ... __ •. oIoIlaal .. A>IloIo, .... ll'oiiIO ...

""""""-""""' .......... """"-.. -"'(lU'lIlI:'), ......... ~ __ ............. l'I_ ... __ ... oII ........ .. ...... ,.,P"'I' ...... '_I._~'''' ... 'OQl('''''''''''' ... ~

!ll'<' • .".. ......... _ .......... -'oaI_""""'''' .. __ ... __ A_'''t04I/R_(''''·~ . .alcbOu.Jq,ntat:bi:ft~IPI.~'~~· ~ =-., (G "WIijIiIII ijil1iiijjiti: .. "' __ ... iiibiiiiIiOlIii ..... _"liIiii.fO.~_ ..... _liliIilWi ........ I ___ ..... ~ .

1iKlI.~fMDrtbW_C/III&~UJ\WLo-~·tfdo.QIIIDIIIIf&·tIIb...,.ulIoA.~.aIt~M~~IboIJ~to~ "_,,, .. _ ..... (dodl¥ __ .... c._""'-__ .... _ ...... __ "' .. ~"" ..... _I""">'_ ................. .., ........ _.-_", .... _Io,-,,_l'IRlIIItt¥_ ...... :NbIch~1I3 ~ IJUl)'CIIIdIb ~ 1hIL~ *.w~"PlIdI::." JII&tIh'I}lkt\p1,g ........ .,.10 ,,~lIIlI1

.A<l<lI ... ~OIb .... ~ ... INI"'I'~r_ ..... -,..". ............. _.1f8I*. _"" ..... __ ........ ,.. ....... ~&br. ..,."ddoll ...... ".U ___ •• _ ... _r..w.c"" .. lllDl"" .. _· ......... mq .. l""""'bjI_l.-" .. _ _ "'_l_._-~ . .. ~.~

ijmjl",rtq"p.. ~4Jr~~a4_~...--a ...... ~~Vf.-hto.." ... ISdy .. J....".,1IIf11l1C1or .. ~lIlor dfll!l.P"-'I6~ol""'Cou.a.J,or...w.tiIlo*~.~

c!lJlr'nt~;:::u"l!d """ '.gUo. ....;.,.,~ .. iPW "~ •• UI~""k""PI!fI*tol_ttur1lwr"'aa 1111 ~lqtaIIM. t .. U ... owut .. h'lNIwith ... p.tl1a.p ..... .-~larc Q )Oii4i4l..,r_OIi1f~ __ ~'JIJf1c:BCU.JJaW .. nmr.diclvai1zIt t1w~~.,n.-. ~ ..... W,unfmllrtfil1 .. .iPllIA~.M«* ..... l1I4WtiY .. IDz __ UIiId~ra)ID.n!III'_FnIUGr ", ....... ~.r ... _ ... '""""'_ ..... ...,. ..... ""-, ... ___ .. _ ""~)'" ...... __ ........ _ •• ~t ... Ql-'Oi*1k.~IIIlItPf<l .. lDlIiIl'diW'IIl .. ........

.B!:mJIUa. \lppa_ RfMtof~ .".. .. ., JIUIIU5~-..dyMlliJi*.Inf~lM~ WlJcltm.pmw .... t1tfJoUCC) «WI ~~ ~~otidlil()tlbJ.blIpda.lUn~lIII"IQPoI~.~"1iiCODlDlIflqwQl'~

VI1AIIAIIl1' '. .

Page 27: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

, .

...- ... ' ... -"

. _,' .•••.•• T"~ ~"I~ ~"" ',., ~"_':' ·.f"

pc r, ", . ;:r,*,7

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.'

.~." ..... ~, '. . .. -.-. : ........ :.1

, 1 ---

-

Page 28: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

· ._. . ..•••• _ ....... '-'. ____ . . __ _ ___ . ___ :..... .c_ .. ._.... •.•. •... _ •..... _ .. o. ...

EXHIBIT 3

EXHIBIT 3

--

Page 29: ~j..~.y-dig.abclocal.go.com/wls/documents/bloomvion.pdfand Louis Ventre executed a second Merchant Agreement and Guaranty in favor of Strategic FWlding Source, Inc. in the form of

, ...1, __

, . /'

~. STRATEGIC

FUNDING

MEllCSANTCASD·.\.DVAN,ClAGllEtMl:NT

ContraotI.lt735' .,' SalOlI'lrlntt: -'.'

'. , '

"'arch 14, 2011 -~111!11<1111&$G ..... W.f'ml")1tId"_1Isi.'1!"'1o"~MmWrJ. {MIlIiiiij (l5;if) (fw)

'~.l.oaal- Murdw Inc., LLC Il/JlIk -m.LraiVOll8IMobExperltnc:a _.:r~ _______ _ 'li'Po.f~(d.d:"",,)()~ OlJmlltGWIlIt)'~ OLlmitodPattno!Jl>ip ()UzoiIo4I.1ab11f1y~ (jSOl.1'nip!otor l'b}o>IoOl_ 300HuV!gMBllldSoulhs.ftoAOIj\ LuVW" _ tI\I ZiP 89100

t.IoIlmtI~ $4MW R.noAvenII. CI\y _ NY ZIp 119118

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